To: Chief Executive Officers of All National Banks and Federal Savings Associations, Department and Division Heads, All Examining Personnel,
and Other Interested Parties

Description: Comptroller's Handbook Booklet Revision and Rescission

Summary

The Office of the Comptroller of the Currency (OCC) issued today the “Agricultural Lending” booklet of the Comptroller’s Handbook, which revises the booklet of the same title issued in December 1998. This booklet provides guidance on agricultural lending, including an overview of agricultural lending markets, associated risks, and risk management practices.

Highlights

The “Agricultural Lending” booklet

provides guidance to bankers and examiners in identifying risks associated with agricultural lending.

establishes supervisory expectations for the risk management of agricultural loans.

includes expanded examination procedures, an internal control questionnaire, and verification procedures for examiners.

Note for Community Banks

The principles contained in this booklet apply to all national banks and federal savings associations engaged in agricultural lending.

With the issuance of this booklet, the “Agricultural Lending” guidance on pages 21-22 of section 214 of the OTS Examination Handbook is rescinded.